Core Insights - Riverwater Partners' Small Cap Strategy underperformed the Russell 2000 Index in Q4 2025 and for the entire fiscal year 2025, primarily due to stock selection and an emphasis on high-quality stocks that lagged behind broader market trends [1] - The firm anticipates a more favorable environment for high-quality businesses in 2026 [1] Company Highlights - BioHarvest Sciences Inc. (NASDAQ:BHST) is a biotechnology company focused on developing technology for higher concentrations of active ingredients from plant cells [2] - Over the past 52 weeks, BioHarvest Sciences Inc. shares traded between $4.72 and $12.80, closing at $5.77 on January 22, 2026, with a one-month return of 8.26% but a three-month loss of 49.87% [2] - The market capitalization of BioHarvest Sciences Inc. is approximately $130.788 million [2] Investment Strategy - Riverwater Partners initiated a position in BioHarvest Sciences Inc. during Q4 2025, having monitored the company for about 18 months and engaged in multiple meetings with its CEO [3] - The firm participated in a recent secondary offering of BioHarvest Sciences Inc. at a discount to its trading valuation, highlighting the attractiveness of its Botanical Synthesis platform for sustainable production of plant phytochemicals [3] - BioHarvest Sciences Inc. currently generates revenue from its VINIA nutraceuticals franchise, which utilizes resveratrol from grapes for health benefits, and the firm plans to increase its position over the next 6–12 months as the company executes its growth plan [3]